Buyer of record S$41.6 million coffeeshop in Tampines purchases adjacent coffeeshop for S$16.8 million

The buyer reportedly spent close to S$60 million in total on the two Tampines coffeeshops in the past few months.

Lean Jinghui | July 01, 2022, 02:38 PM

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Earlier in June, a coffeeshop located at Block 201 Tampines Street 21 was reported to have been sold for a record S$41,682,168.

According to 8World, an adjacent coffeeshop at Blk 201D Tampines Street 21 has recently been purchased by the same buyer for S$16,800,000.

The buyer reportedly spent close to S$60 million in total on the two Tampines coffeeshops in the past few months.

Slightly lower price per square foot

8World reported that the buyer – a company called G&G – had already planned to purchase the coffeeshop at Blk 201D Tampines Street 21 in November 2021.

The transaction was completed last month, in May 2022.

The 358 sqm (3853 sqft) coffeeshop comprises 11 stalls, and is currently operated by Indian-Muslim restaurant Saffrons.

It is located just adjacent to the Blk 201 Tampines Street 21 coffeeshop.

The price per square foot (psf) works out to be about S$4,360, which is slightly lower than the S$6,964 psf price tag for the Blk 201 coffeeshop.

However, 8World reported that most Saffron-operated stalls will be discontinuing their tenancy at the coffeeshop, save for one chicken rice stall.

Not due to rental costs

Saffrons Head of Marketing Ridjal told 8World that this was mainly due to the restaurant's considerations for a change in their operational model.

Saffrons's outlets at Blk 201D constitute its biggest franchise, but operational costs are high due to a larger occupied area.

Ridjal added that Saffrons therefore plans to change their operational model, and instead operate through a series of smaller coffeeshops.

It will cease operations at Blk 201D on July 27, and move to Toa Payoh and the Opera estate area to establish two new outlets.

The change of hands is expected to officially happen on Aug. 1.

The owner of the chicken rice stall, who has decided to continue operating at the Blk 201D coffeeshop, shared that after the changing of hands, rental costs will be increased to S$3,000 a month.

He added that he felt that the adjustment was reasonable, which was why he had decided to stay on.

However, he noted that he might have to reconsider the decision if the rental costs became too hard to bear.

Top image via Google Maps Street View